I am still experiencing an issue where the invalid character translation square is showing up at the end of the lines in the output panel. Could you just slurp up <cr>/<lf>/<cr-lf> and replace with a valid newline?

I might be able to narrow down the problem a little bit, since I have never encountered it on any of my Windows 7 machines, but recently saw it when running on a Windows XP machine when displaying output from GHC (the Haskell compiler).